When it comes to investments, risk isn’t a bad word. A certain amount is necessary for any reward to be gained. Upside risk is the measure of the potential for an investment to gain in value. Measures of downside risk estimate how much the investment could decline in value if market conditions changed. Some measures reveal the worst-case scenario that shows an investor exactly how much they stand to lose.

Volatility on the world’s stock markets has continued in April, mainly because of the coronavirus pandemic. However, share prices have rallied from their mid-March lows. World stock markets are around 10 per cent to 20 per cent lower than at the start of 2020. Despite the bad economic news, investors are trying to look through the crisis to the recovery.

Latest tweets from NEST

We use optional cookies to ensure that we give you the best experience on our website. To receive these cookies, please Accept cookies. To review what cookies we use before you accept them, visit our Cookie policy page.Accept cookiesNoCookie policy